Daniel Ortega, one of Latin America’s best-known Marxist revolutionaries, is living out a second act as a pro-business, increasingly authoritarian leader

MANAGUA, Nicaragua—Daniel Ortega, one of Latin America’s best-known Marxist revolutionaries, first came to power by helping to oust dictator Anastasio Somoza 37 years ago. His government drew close to the Soviet Union, wrecked the Nicaraguan economy and fought a civil war against U.S. backed rebels.

Since being elected president in 2006—after a 16-year gap—Mr. Ortega is living out a second act as a pro-business, increasingly authoritarian leader, empowered by economic growth that is outpacing most of Latin America.